Guangdong Zhenrong seeks funds to revive Titan Petrochemicals

Guangdong Zhenrong seeks funds to revive Titan Petrochemicals

Guangzhou: Guangdong Zhenrong Energy is seeking funds from the private lending market to help revive Titan Petrochemicals, which is on the verge of liquidation, local financial media China Business Journal has reported.

Zhenrong has commissioned agencies to look for funds from private lending firms in cities including Guangzhou and Shenzhen and is willing to accept an interest as high as 22-28%. The company will pledge its 160m shares in Hong Kong-listed Sheng Yuan Holdings as collateral.

A private lending agency in Guangzhou confirmed that it has received an inquiry from Zhenrong to borrow RMB60m ($9.6m), and the purpose of the lending is to solve the stock trading resumption of TitanPetrochemicals. However, the lending agency didn’t approve the loan as it reckons the deal to be highly risky.

Zhenrong became the controlling shareholder of Titan Petrochemicals in August 2012, acquiring 45.57% equity shares in the company.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

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